Tax information Switzerland

Product calendar

Stop loss information

Stop loss

0.827 CHF

Financing level

0.8229 CHF

Last update

24.09.2018 03:51:47

Underlying price1)

0.993 CHF

Distance to stop loss1)

0.166 CHF (16.72%)

Stop loss touched

No

UBS Mini-Futures

The performance of a UBS mini future is relatively easy to understand, since it moves more or less in step with
the underlying asset. With a UBS Mini Futures Long, investors who are willing to take risks can speculate
on rising prices, and with a mini futures short, on falling prices of the underlying asset (e.g. equities,
indices, currency pairs, interest rates, commodities). Since investors have to finance only a small portion
of the underlying asset themselves, a leverage effect is created. As issuer, UBS pays the rest, i.e. the
financial level. If the underlying asset of a long mini future appreciates significantly, for example,
investors will earn above-average profits. The higher the financing level, the greater the leverage.

But borrowing money also costs interest. The issuer charges the investor for the financing costs by adjusting
the financing level on a daily basis. The name "mini futures" reminds us that these instruments operate much
like standard futures contracts, i.e. futures, but unlike these their maturities are not limited. Another
important difference compared to conventional futures is that investors never have to furnish additional
funds for UBS mini futures, as the instruments have an automatic loss limitation function called the stop loss
level. If the underlying asset moves in an undesired direction and reaches the stop loss level, the mini future
expires with immediate effect. In this case, the issuer calculates the remaining value and disburses it to the
investor – provided it is not zero. The stop loss level for long mini futures is set slightly above the
financing level and in the case of short mini futures slightly below. The stop loss level therefore limits
the risk and prevents an obligation to pay further capital. If the stop loss level of the underlying price
is reached or exceeded, a considerable loss of the invested capital can be expected (total loss is possible).

In addition, investors must take into consideration the issuer risk, since loss of the invested capital could
occur if UBS AG becomes insolvent, regardless of the performance of the underlying asset and other market
parameters.